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Managers must learn to assess how they respond to good and bad economic times. Too many companies over-hire in good times and quickly look to downsizing as a temporary fix to slowing demand for their services. It has long been acknowledged that employees are a company's most valuable assets, but many are slow to recognize the full impact of these tough decisions on the motivation of surviving employees. A carefully thought out plan can go a long way in preventing the potential nightmare associated with cutting expenses while attempting to maintain productivity. The biggest threat to employee motivation may be a shift in focus to self-preservation rather than team performance.
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